In defense of the 30-year mortgage

By Mike Konczal, Updated: August 10, 2013

When writers are forced to discuss the complicated world of housing reform, as they have had to do after President Obama’s recent housing speech, they usually rush to one of two meta-conversations.

The first is whether or not we emphasize homeownership too much, and whether we should encourage more people to rent.

The second is whether or not the 30-year fixed-rate mortgage, which President Obama and many approaches to Fannie/Freddie reform want to preserve, is a luxury, and a subsidy not worth preserving after the crisis.